Rock-bottom prices don't always mean rock-bottom businesses. The stocks we're examining today have all touched their 52-week lows, creating a classic investor's dilemma: bargain opportunity or value trap?
While market timing can be an extremely profitable strategy, it has burned many investors and requires rigorous analysis - something we specialize in at StockStory. Keeping that in mind, here is one stock poised to prove the bears wrong and two facing legitimate challenges.
Two Stocks to Sell:
Udemy (UDMY)
One-Month Return: -1.8%
With courses ranging from investing to cooking to computer programming, Udemy (NASDAQ: UDMY) is an online learning platform that connects learners with expert instructors who specialize in a wide range of topics.
Why Do We Think Twice About UDMY?
- Monthly Active Buyers have declined by 56.2% annually over the last two years, suggesting it may need to revamp its features or user experience to stay competitive
- Estimated sales growth of 2% for the next 12 months implies demand will slow from its three-year trend
- Highly competitive market means it’s on the never-ending treadmill of sales and marketing spend
At $4.90 per share, Udemy trades at 3.4x forward EV/EBITDA. If you’re considering UDMY for your portfolio, see our FREE research report to learn more.
Wendy's (WEN)
One-Month Return: -4.5%
Founded by Dave Thomas in 1969, Wendy’s (NASDAQ: WEN) is a renowned fast-food chain known for its fresh, never-frozen beef burgers, flavorful menu options, and commitment to quality.
Why Should You Sell WEN?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
- Estimated sales growth of 1.3% for the next 12 months implies demand will slow from its six-year trend
- High net-debt-to-EBITDA ratio of 7× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Wendy's is trading at $7.72 per share, or 13.3x forward P/E. Check out our free in-depth research report to learn more about why WEN doesn’t pass our bar.
One Stock to Watch:
Accenture (ACN)
One-Month Return: -29.9%
With a workforce of approximately 774,000 people serving clients in more than 120 countries, Accenture (NYSE: ACN) is a professional services firm that helps organizations transform their businesses through consulting, technology, operations, and digital services.
Why Are We Fans of ACN?
- Market share has increased this cycle as its 9.6% annual revenue growth over the last five years was exceptional
- Massive revenue base of $70.73 billion makes it a well-known name that influences purchasing decisions
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Accenture’s stock price of $196.87 implies a valuation ratio of 14.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
